Consider the utility function (, ) = + , with = + 1 and = . (Verify these.)

a. is the assumption of "more is better" (non-satiation) satisfied for both goods x and y?

b. does the marginal utility of diminish, remain constant, or increase as the consumer buys more ? Explain.

c. what is ,?

d. is , diminishing, constant, or increasing as the consumer substitutes for along an indifference curve?

e. on a graph with on the horizontal axis and on the vertical axis, draw a typical indifference curve (not necessarily exactly to scale, but should reflect whether , is diminishing or not). Label the curve as 1. f. on the same graph, draw a second indifference curve 2, where 2 > 1